Infinera Corp. Plunges After Earnings (INFN)

Optical networking company Infinera Corp.

released its third quarter earnings yesterday after the closing bell. The company reported non-GAAP net income of $18.7 million or $0.18 per share, compared with a net loss of $3.1 million or $0.03 per share in the year ago period. This beat analysts' consensus EPS estimates of $0.09. Revenues were $130.06 million versus $83.40 million in last year's corresponding quarter. Wall Street analysts had consensus revenue estimates of $126.44 million going into the report. While the quarter looked good, the company's guidance was not. INFN management said that they anticipate EPS of $0.02 to $0.05 on revenue of $115 million to $120 million in Q4. This compared with Wall Street EPS expectations of $0.11 on revenue of $132.5 million. As a result of the disappointing guidance, the stock has been crushed, losing 35% to $8.02.